DX Dividend
Although DX has a dividend of 0.17 with an ex-dividend date of May 23, you can sell covered calls on Dynex Capital, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 10:45 AM ET):
| Dynex Capital, Inc. (DX) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 12.56 | 12.57 | 12.57 | +0.02 | 754K | 15 | 1.3B |
DX Dividend-Like Income Using Covered Calls
With DX at 12.57, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:
| Annual Yield | Annual Premium | Cents/Day |
|---|---|---|
| 3% | 0.38 | 0.1 |
| 5% | 0.63 | 0.2 |
| 10% | 1.26 | 0.3 |
So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | DOCS dividend | |
| 2. | SPY dividend | 7. | SLV dividend | 2. | CAVA dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | RXRX dividend | |
| 4. | TSLA dividend | 9. | GLD dividend | 4. | JACK dividend | |
| 5. | QQQ dividend | 10. | INTC dividend | 5. | NEXT dividend | |
Want more examples? DWX Dividend | DXC Dividend
